There are a confluence of factors required to achieve the dump badge:
1. A person works in an office where employees must wear photo IDs.
2. The person wears the badge clipped to his belt.
3. Typically, this involves a male, because women rarely wear badges on their belts.
4. You must have a restroom that is shared among multiple employees.
5. The person wears the badge on the side of his pants which faces out when sitting in the stall.

Ok, if all of the elements are in place, this is what happens: worker A goes into the stall for a bowel movement. What he doesn't realize is that when he dropped his pants, his badge is visible underneath the stall door and everyone who comes in can see the identity of the one in the bathroom. This becomes particularly troublesome if any noteworthy events happen in the restroom (like those involving odors or messes left behind).

1: Hey, Bruce, have you seen Steve?
2: Give him a minute, I just saw his dump badge in the bathroom.